City of Richmond
Attn: Charles Gerard, Port Director
1322 Canal Blvd.
Richmond, CA 94804
Re: Point Potrero Marine Terminal Ocean-Going Vessel At Berth Regulation RFP Response
Dear Mr. Gerard,
Having examined the Bidding Documents including Instructions to Bidder, Conditions of Contract, Employers Requirements, Scheduled to Bid, Pricing and any additional Agenda or Amendments, we provide our interest/intent to bid on the above-named RFP.
Contact: Kevin Nicolello
Executive Vice President
4G Management, Inc
2018 Pacific Coast Hwy. #203
Lomita, CA 90717
Ph: 562-810-0069
[email protected]
4G Management, Inc. is an SBE-certified business with headquarters in Los Angeles, CA. We are the pioneer in Maritime Emission Capture and Control Systems (MECCS) and specialize in developing and deploying emissions control technology that captures and treats harmful emissions from ships and locomotives utilizing the cleanest methods available. We provide cost-effective, CARB-approved barge and dock mounted systems for use on ocean-going vessels to support the at berth regulations. 4G Management, Inc. currently operates MECCS-1 barge powered by renewable natural gas (RNG) with a Negative Carbon Index at the Port of Oakland with plans to build multiple MECCS barges in the Bay Area.
We have reviewed the City of Richmond Standard Contract and provide the following comment. 4G Management currently holds all the required Insurance policies including Professional Liability.
We interpret Technology Liability and Cyber Liability language as not required by 4G Management.
We appreciate the opportunity to service the City of Richmond’s maritime customers in this RFP.
4G Management Qualifications and Experience
4G Management, Inc. is the pioneer in Maritime Emission Capture and Control Systems (MECCS).
Headquartered in Los Angeles, CA, we specialize in developing and deploying emissions control technology that captures and treats harmful emissions. The 4G Management team has been working on emission reduction technologies since 2006 and for over a decade with major shipping customers, Ports, CARB and SCAQMD regarding emission capture and control technology. The 4G team and its technology offers a solution for ship owners, terminals and ports seeking to comply with the CA At Berth Regulation. Using 4G’s technology to mitigate its emissions at the source.
Currently under the regulation are containers, reefers and cruise vessels. In January 2025 the Ro-Ro’s and Liquid Bulk (Tankers) will be added to the At Berth Regulations and 2027 for the remainder of California.
Our experience working with Industry, CARB, SCAQMD, BAAQMD and EPA is unparalleled. This expertise will be necessary to support our technical team’s design efforts in response to CARB current and future regulations. We have built cost-effective, proven technology that does not require any installation or modification of shipboard or shoreside infrastructure.
Our MECCS treats emissions using an exhaust capture system and an emission treatment system. The MECCS captures and removes airborne emissions that are left unmitigated causing a health risk to neighboring communities. Now that CARB has targeted ports and terminals, the requirements for the use of MECCS technology is growing.
Vessel responsibilities consist of assisting with the securing of the barge and logging electrical load on an hourly basis. All other recordkeeping is conducted by MECCS personnel who provide the shipping lines with the information needed to conduct compliance reporting. All emissions reductions captured during operations are verified in real time by a continuous emissions monitoring system (CEMS), approved under the company’s CARB Executive Order.
Current Projects and Experience in Emissions Treatment:
4G Management currently operates a renewable natural gas powered MECCS barge that treats emissions at the Port of Oakland. MECCS barges capture 90+% of PM, NOx, and ROGs emissions that would otherwise be a health risk for the communities that surround the port, while themselves creating near zero emissions of any kind in the process. Our barge is being designed for use with Container vessels but will allow for a quick connection piece for use with auto-carrier vessels.
The MECCS captures and removes airborne emissions from auxiliary engines and boilers of ocean-going vessels at berth. No modification of the vessel required and there is no impact on loading or offloading operations. The untreated emissions from the vessel are drawn into the MECCS system where the PM is captured in the regenerative Diesel Particulate Filters (DPFs). The exhaust then enters the heat exchanger system which utilizes waste heat from the exhaust. The heat is then controlled to the desired temperature in the electric duct heater section where it then enters the SCR at its optimal temperature for NOx/ROGs reduction. The exhaust is finally routed back through the heat exchanger, prior to entering the atmosphere.
Our system will reduce 100+ tons of NOx, ROGS, GHG and PM annually at 85% utilization.
4G’s Home Port is the Port of Oakland, Berth 34 adjacent to the Everport Terminal. If awarded this RFP, 4G will continue to use Berth 34 as our home port. Our space needs would be limited to overnight berthing should we experience back-to-back vessels.
Statement of Service
4G Management has the ability to perform MECCS vessel service pursuant to the City of Richmond Ocean Going Vessel at Berth Regulations. MECCS service schedule is as follows: Estimated 60 vessels annually, with a port stay of 24 hours or more. MECCS has the ability to stay along side for 6+ days.
Proposed Cost
4G Management cost is based on a port-to-port rate structure. Based on a two-year agreement, 4G’s rate will be $1, 050.00 per hour first year 2025 ~ 2026. Second year will be $1,050.00 plus CPI 2026 ~ 2027.
Please see below customer service agreement for your reference.
Sample Service Agreement
Please see attached Sample Service Agreement.
This Emissions Control Agreement ("Agreement") is made by and entered into by (Company) on behalf of 9 company) hereinafter referred to as the ("Customer") and 4G Management, Inc. ("Operator.") The Customer and Operator are sometimes referred to herein, individually as a "Party" and collectively, as the "Parties."
OPERATOR 4G Management, Inc. ("4G,") its affiliates or assigns located at 2018 Pacific Coast Hwy, #203 Lomita, CA 90717
CUSTOMER (Customer and Address)
TERMS The term of this Agreement is from January 1, 2025 through January 1, 2027. If either Party breaches a material term of this Agreement and fails to cure such breach as promptly as practicable, but in any event no later than three (3) calendar days of notice of such breach, then the non-breaching Party is entitled to terminate this Agreement at any reasonable time thereafter with immediate effect and without any penalty. liability or further obligation.
LOCATIONS Services and terms offered herein are for the emission capture and control, treatment of Customer's vessels at berth Point Potrero Marine Terminal.
SYSTEM The system (“System”) is comprised of the MECCS -1 barge mounted emissions control system.
OPERATOR
COMMITMENT
Operator guarantees that the System shall reduce Customer vessel emissions from its auxiliary engines while in the ports in compliance with the California Air Resource Board ("CARB") "At-Berth Regulation” as described in the California Code of Regulations, section 93118.3, title 17, chapter 1, subchapter 7.5 and all applicable requirements approved by the Ports and CARB.
CUSTOMER
COMMITMENT
Customer contracts for use of the System and agrees to use the System on a non-exclusive basis as a means of compliance under CARB rules on a non-exclusive basis.
SERVICE REQUEST Customer will notify Operator of a service requirement within 5 days prior to arrival. Customer understands that Operator services vessels on a first-come, first-served basis and that late notice may result in Operator completing service prior to servicing a second vessel at PPMT.
OPERATOR DATA
AND RECORDS
Operator shall monitor and record all operating data and information and shall provide Customer all necessary information needed for complying with the reporting requirements of CARB's At-Berth Regulation within five (5) business days after the service has been completed.
HOURLY CHARGE $1,050.00 USD per hour for the first year. 4G will use CPI average for second year. The Hourly Charge is for MECCS system inclusive of all tug services and/or other 3rd party services required for mobilizing, de- mobilizing and positioning System to Customer's vessel.
Notwithstanding the above, all charges for any "Spacer Barges," "Fenders" and/or supplemental 3rd party crew boats are not included in the Hourly Charge and will be passed on to the Customer at the actual cost to Operator + plus a 15% surcharge. Additional charges may only be added upon written authorization by the Customer. In the event Terminal may require a Spacer Barge between the MECCS Barge and Vessel, Operator will invoice the Spacer Barge as separate line item.
EMISSIONS CONTROL
SERVICE CHARGES
Service hours will be charged from the beginning of MECCS mobilization port to the end of MECCS demobilization return to port. Customer understands that Operator has a minimum charge of twenty-four (24) hours per vessel call.
CANCELLATION FEE Cancellation fee of twenty-four (24) hours will apply if customer does not notify Operator within forty-eight (48) hours of cancellation.
HOLIDAY RATES The Holiday Rate of an additional 30% beyond the normal Hourly Charge shall be applied for the following Holidays: New Year's Day, Martin Luther King Day (third Monday in January),
President's Day (third Monday in February), Memorial Day (last Monday of May), Independence Day, Labor Day (first Monday of September), Columbus Day (second Monday of October),
Veteran's Day (November 11), Thanksgiving Day (fourth
Thursday of November), Christmas Eve and Christmas Day. If a job starts or ends within the 24- hour period of the holiday date, then the Holiday Rate will apply for the hour(s) of the service call that falls within the holiday date.
EMISSION CONTROL
SERVICE CHARGES
Service hours will be charged from the beginning of MECCS mobilization from port to the end of MECCS demobilization to port. Customer understands that Operator has a minimum charge of twenty-four (24) hours per vessel call.
CANCELLATION FEE Cancellation fee of twenty-four (24) hours will apply if customer does not notify Operator within forty-eight (48) hours of cancellation.
HOLIDAY RATES The Holiday Rate of an additional 30% beyond the normal Hourly Charge shall be applied for the following Holidays: New Year's Day, Martin Luther King Day (third Monday in January),
President's Day (third Monday in February), Memorial Day (last Monday of May), Independence Day, Labor Day (first Monday of September), Columbus Day (second Monday of October),
Veteran's Day (November 11), Thanksgiving Day (fourth
Thursday of November), Christmas Eve and Christmas Day. If a job starts or ends within the 24- hour period of the holiday date, then the Holiday Rate will apply for the hour(s) of the service call that falls within the holiday date.
PAYMENT TERMS Net 15 days from the date of billing. All late amounts will be charged at an interest rate of 10%. Customer may dispute an invoice prior to the due date of such invoice, whereupon the time to pay the disputed portion of the invoice shall be extended until the dispute is resolve
LABOR PROVISION At all times during the Term of this Agreement, Operator shall be in compliance with all applicable federal, state, and local labor laws regulations and/or agreements.
OPERATOR
COVERAGE
At all times during the Term, Operator shall maintain and keep in full force and effect, insurance meeting the coverage shown and with limits and coverage provisions not less than the limits set for below:
Commercial General Liability insurance with a minimum limit of $1,000,000 per occurrence for bodily injury, personal injury and property damage and excess/umbrella liability insurance in the amount of $10,000,000.
Commercial Automobile Liability insurance with a minimum combined single limit for bodily injury and property damage of $5,000,000 per occurrence covering all vehicles owned or used by the Operator.
Workers' Compensation in accordance with the laws of the jurisdictions where Work is to be performed. If the Work is performed on or adjacent to navigable waterways, then the policy must include U.S. Longshore and Harbor Workers' Compensation coverage and Maritime coverage, as applicable.
Employers' Liability insurance with limits of $1,000,000 for each employee, $1,000,000 policy limit by disease and $10,000,000 for each accident.
Professional Liability Insurance with an aggregate limit of liability not less than $1,000,000. Such insurance shall cover all errors, omissions or negligent acts in the delivery or performance of products, services and/or licensed programs under this agreement. The Professional Liability Insurance retroactive coverage date shall be no later than the effective date of this agreement. Suppler/Vendor shall continuously maintain such insurance or purchase an extended reporting period providing that claims first made and reported to the insurance company within two (2) years after termination of the agreement will be deemed to have been made during the policy period.
Protection & Indemnity ("P&I") or its equivalent with respect to any vessel used by the Operator, in connection to Services provided under this Agreement. Such insurance shall be evidenced through a full entry with an international P&I Club, including collision liability, injury to crew, tower's liability and liability for pollution containment and clean-up, with extensions for marine contractual liability, removal of wreck, etc. subject to a minimum limit of liability of $20,000,000 any one accident or occurrence.
Alternatively, if a full entry in an international P&I Club is not available or applicable, maritime liability coverage should be evidenced on a SP-23 form or equivalent including collision liability, tower's liability and third-party statutory liability for seepage, pollution, containment and cleanup, with extensions for marine contractual liability, wreck/debris removal, subject to a minimum limit of liability of $20,000,000.
Vessel Pollution Insurance (if not already provided under Protection & Indemnity above) insuring (i) costs of cleanup in the event of a spill or leakage (with a minimum limit sufficient to meet any minimum amount required by law) and (ii) liability for third party claims in the event of a spill or leakage in an amount of $10,000,000. Vessel Pollution Insurance shall contain terms acceptable to the Customer and no more restrictive than provided under WQIS policy forms or equivalent.
Hull & Machinery insurance including collision liability with sistership clause unamended, with limits of liability at least equal to the full value of all vessels used in connection with performance of the transportation under this Agreement, and with navigational limitations adequate for Operator to perform the specified services.
Other insurance policies or increased insurance limits may be prescribed by the Customer from time to time based on the materials ordered or work to be performed. All policies excluding workers' compensation and professional liability shall be endorsed to name Customer, its parent, subsidiaries, or affiliated companies and their shareholders, officers, directors, agents and employees as Additional Insured and shall be primary and non-contributory with any other insurance carried by Customer. The Hull & Machinery policy shall include a Waiver of Subrogation in Customers’ favor.
Umbrella or excess insurance may be used to satisfy the above limit requirements. Be sure to state on the certificate the coverage(s) to which such umbrella or excess policies apply.
All insurance must be placed with insurance companies rated at least B+ by Best's Key Rating Guide. Carrier shall provide a certificate of insurance to evidence above insurance coverage. All insurance policies shall provide that the Customer will be notified thirty (30) days prior to the termination or cancellation, or material change of any policy.
The certificate of insurance shall be sent to the following address:
ENTER ADDRESS
ACCESS OF CLIENT
FACILITIES
Customer shall provide Operator with the use of and reasonable access to Customer's facilities and personnel to the extent required for purposes of facilitating Operator's performance of the Services. This specifically includes access to vessels to be serviced as soon as is possible after the vessel is docked and for the longest duration possible during each vessel call. This also specifically includes securing permission from terminal operators when necessary.
NOTICE OF DAMAGE
CLAIM
Should there be any damage or Injury suffered by or caused to a vessel to which Operator has provided services rendered hereunder, notice must be given to Operator within 24 hours of discovery of damage or injury, as well as providing a reasonable opportunity to inspect and survey any such damages before repairs are begun.
FORCE MAJURE Acts of God, fires, floods, weather, epidemics, war, strike or other cause(s) in each case that are beyond the reasonable control of a Party, not reasonably foreseeable, not caused by acts or omissions of the Party affected and that could not have been avoided through a work-around plan, which prevent the Operator from providing or procuring the service, Customer from receiving or using service or any resulting work product or either Party from performing under this Agreement ("Force Majeure Event") will suspend the affected Party's respective obligations under this Agreement during the period required to remove such Force Majeure Event. The affected Party will promptly notify the other Party of the Force Majeure Event and its cause. If the affected Party is Operator and the period of the Force Majeure Event lasts longer than fifteen (15) calendar days, then Customer is entitled at any time thereafter, while such Force Majeure Event continues, to terminate this Agreement without any penalty, liability or further obligation therefore immediately upon notice to the Operator.
INDEMNIFICATION Each party (the "Indemnifying Party") will defend, indemnify and hold harmless the other Party and all of its officers, directors, employees, agents, successors and assigns (the "Indemnified Party") from and against any and all third party claims, demands, actions, suits, losses, liabilities, damages (including taxes), and all related costs and expenses, including without limitation reasonable attorneys' fees (collectively "Loss") due to, arising from or relating to (a) the Indemnifying Party's breach of one of its obligations, representations, warranties or covenants set forth in this Agreement; (b) any actual or alleged infringement, violation or misappropriation of the intellectual property rights of any third party; (c) the negligent, willful or reckless act or omission of the Indemnifying Party; or (d) death, personal injury, bodily injury or property damage caused by the Indemnifying Party. The Indemnifying Party's obligation to indemnify hereunder is predicated upon the Indemnified Party (i) giving prompt written notice of any Loss, (ii) giving the Indemnifying Party the opportunity to assume sole control over the defense and settlement, if applicable, of the Loss and (iii) providing, at the Indemnifying Party's sole expense, all reasonably requested and relevant information, assistance and authority to enable the Indemnifying Party to perform its obligations hereunder. The Indemnifying Party agrees not to settle any Loss without the Indemnified Party's written consent, which shall not be unreasonably withheld.
SURVIVAL The Parties further agree that the waivers and disclaimers of liability, indemnities, releases from liability, and limitations on liability expressed in this Agreement shall survive
termination or expiration of this Agreement.
CONFIDENTIALITY Confidential Information is defined herein as any technical, process, operating or economic information which is designated by a Party to be confidential or proprietary, or of such a nature as to be generally known or considered to be confidential or proprietary, including information concerning methods of manufacture or manufacturing, mechanical processes or systems, drawings for equipment, machinery or other devices, technical data, operating data and records, specifications, business plans and financial information, including cost information and the like. Parties agree to hold in confidence any Confidential Information supplied to them by the other Party or other persons acting on their behalf.
Parties further agree, to the extent requested by the supplier of such information, to require its subcontractors, vendors, suppliers, employees or other parties who may lawfully request the information, to enter into appropriate nondisclosure agreements relative to such Confidential Information, prior to the receipt thereof. This obligation shall continue for a period of one (1) year after this Agreement expires or is
terminated.
NO ASSIGNMENT OF
CONTRACTS/SERVICES
Services and terms are offered solely to the Customer listed above and its owned, managed or chartered vessel. Any third-party use of emissions control services contemplated under this agreement by the Customer is prohibited without the prior written consent of the Operator COUNTERPARTS The parties may execute this Agreement in counterparts, which shall, in the aggregate, when signed by both parties constitute one instrument.
Thereafter, each counterpart shall be deemed an original instrument as against any party who has signed it.
GOVERNING LAW This Agreement and the rights and obligations of the parties hereunder, shall be governed by United States federal maritime law.
To the extent United States federal maritime law does not cover an element of this Agreement or a dispute arising herein, the laws of the State of California shall govern.
CODE OF CONDUCT Operator agrees to comply with the Code of Conduct for Contractors of HMM America Shipping Agency and Its Subsidiaries, hereby incorporated by reference.
Emission Control Agreement AGREED TO BY:
4G Management, Inc. Customer
Name: Name:
Title: Title:
Signature: Signature:
Date:
Date: